Belo spins off print assets
EmptyBelo Corp.'s board on Friday approved the spinoff of the media company's newspapers and related assets into a separate publicly traded firm. Shareholders pushed Belo to split up the company, arguing its stock price reflects the newspaper industry's challenges and hides the better momentum at its TV stations.
Belo shareholders will receive 0.20 shares of the new print business, named A.H. Belo, for each Belo share held. After the spinoff, Belo expects to pay an annual dividend of about 30 cents, while A.H. Belo anticipates an annual dividend of about $1 after adjusting for the distribution ratio.